Pay down mortgage or put it into Avc

adam88 · 2017-10-14 08:57:31

Hi all. Just a query, I've a few k spare. Single figures and 25 yrs left in mortgage. Would I be better off putting it against my mortgage or putting it against an Avc. Im 29

14-10-2017 09:57AM

#1

adam88

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Hi all. Just a query,

I've a few k spare. Single figures and 25 yrs left in mortgage.

Would I be better off putting it against my mortgage or putting it against an Avc.

Im 29

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#2 14-10-2017 10:03AM

gerrybbadd

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Join Date: January 2008

Posts: 9587

adam88 wrote: »

Hi all. Just a query,

I've a few k spare. Single figures and 25 yrs left in mortgage.

Would I be better off putting it against my mortgage or putting it against an Avc.

Im 29

With the AVC, it's tax relievable at your highest rate, so you'll get a return. So if you pay tax at 40% you will get a 40% repayment of tax (subject to conditions). If you invest before 31st October and elect to put it back to 2016 (again before 31st October), you will get an immediate repayment, otherwise you will get it in January.

You could then use the 40% return against your mortgage. Just an idea

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